Lesson 2: e-Business Systems in Tourism

E-BUSINESS SYSTEMS IN TOURISM - Lesson 2 -

Angelina Njeguš, PhD Associate Professor at Singidunum University

Belgrade - Serbia, 2013

Prof. dr Angelina Njeguš

Table of Contents

The Tourism System

Introduction to e-Business

E-Business Systems

E-Tourism

Cloud Tourism


The Tourism System

What is behind all this?

Attractions

Accommodations

Tourists And there is much more ...


The Tourism System

The answer:

Together:

THE TOURISM SYSTEM


What is a System?

In a system, all separate parts perform together to make it function


What is a System?

Something that has parts: Components

Which are Interrelated

As a part of Society, the system receives and sends influences from and to the External Environment

Because components, interrelations, and society change over time – all these make a system: Dynamic


Output

Feedback -> Dynamic System

Tourism as a System

Components: Tourists, Companies, Destinations

Interrelated: Supply and Demand

External Environment: Political, Economical, Social and Technological Factors ...

Dynamics: Nature of Tourism changes over the years

Tourist

Companies

Destinations

Input

Demand

Supply

Tourism System Environment


Dynamics of Tourism

Tourism in the recent past: OLD TOURISM

Travel industry was in charge

Attraction based

Old technologies

Tourism in the near future: NEW TOURISM

Consumer is in charge

Experience based

New technologies


Evolution of IT Computing

Impact on Tourism

1980s 1990s 2000s

Client-Server Computing

Mainframe Computing

Internet Computing E-Business

Cloud Computing

Service-Oriented Computing

2010s

Centralized services Shared services Self-services Services:

Software: Centralized Decentralized Distributed

e-Tourism

Cloud Tourism


What is Internet?

Network

A connected system of objects or people

Computer network

A collection of computers and other related hardware devices connected together so users can share hardware, software, and data, and electronically communicate

Internet

Global network of computer networks that:

─ transmit data using TCP/IP protocol

─ interconnected with special gateways or routers

─ provide various services


TCP/IP protocol

The most widely used communication protocol, that consists of two protocols:

Transmission Control Protocol (TCP) - responsible for delivery of data

Internet Protocol (IP) – provides addresses and routing information

Uses packet switching to transmit data over the Internet

Messages are separated into small units called packets and travel along the network separately


How TCP/IP works

Source: Nedorost, 2009


Internet services

Internet services can be grouped into:

Basic services (e-mail, FTP, Telnet ...)

Public services (IM, WWW ...)

Search services (Yahoo, Google ...)

Security services (Pretty Good Privacy - PGP, Secure Shell – SSH ...)

System services (Ping, X-windows ...)


Internet service: World Wide Web

World Wide Web (WWW, W3, or the Web) is a system of interlinked hypertext multimedia documents accessed via the web browser


Web generations: Web 1.0

Web 1.0 (1991 - 2004) features:

Static websites

Read-only content

P2W (People to Web)

Source: Hay, 2010



Web 2.0 (2004 – 2009) features:

– User-generated content

– Read-write web

– Collaboration

– P2P (People to People)

Web 2.0 technologies:

– Blogs

– Wikis

– Social networking sites

– RSS feeds

– Video-sharing sites ...

Source: Hay, 2010



Web 3.0 (2009 - ...) features:

Semantic Web (or the meaning of data)

Personalization

Intelligent search

W2W (Web to Web)

Source: Hay, 2010


Web generations


Intranet

Private network of an organization based on Internet technology, and accessed over the Internet


Extranet

Restricted computer network that allows controlled access to a company’s internal parts of information system to authorized outsiders such as customers, suppliers, partners etc.


What is e-Business?

Conducting key business functions over electronic systems:

– e-finance

– e-HRM

– e-procurement

– e-marketing

– e-manufacturing

– e-management

...

Connects critical business systems directly to its customers, employees, partners, and suppliers using Internet technologies

An integrated system that should provide:

– e-Commerce

– e-Payment

– e-Communication

– e-Production

– e-Distribution


E-Business Adoption Proces

Source: The McKenna Group Interviews and Analysis


e-Commerce

e-Commerce is a subset of an overall e-business strategy

the sales aspect of e-business

e-Commerce involves conducting business transactions over electronic systems

It is usually associated with buying and selling over the Internet, or conducting any business transaction involving the transfer of ownership or rights to use goods or services [6]

The main e-commerce actors are represented as:

B – Business

C – Customer/Consumer/Citizen

G – Government

E – Employee


E-Commerce Models

Depending on the parties involved in the transaction, e-commerce can be classified into some basic models:

Business-to-Business (B2B)

Business-to-Consumer (B2C)

Consumer-to-Consumer (C2C)

Business-to-Employee (B2E)

Government-to-Business (G2B)

Government-to-Citizen (G2C)

...


E-Commerce Business Models

B2B Business Model

B2C Business Model


Consumer-to-Consumer Model

The C2C model involves transaction between consumers

a consumer sells directly to another consumer

eBay is common example of online auction Web site that provides a consumer to advertise and sell their products online to another consumer


E-Government Models

E-Government provides and improves online services, transactions and relationships with their employees internally, businesses, citizens, other government agencies

27


Mobile commerce

Modern e-commerce typically uses mobile devices

Mobile commerce is delivery of e-commerce capabilities via wireless technology


E-Payment

1The difference between e-money and e-finance is the fact that e-money funds are not kept in the bank's financial accounts

Electronic transfer of money from one account to another

e-Payment

E-Finance

E-Banking

Internet

banking

Telephone banking

Other e-channels

Other financial products or

services

Online

brokering

Internet insurance

Other e-services

E-Money1


E-Communication

E-communication is electronic transmission of coded information between software units, that:

combine numerous media (text, graphics, sound, video ...) into a single message

are interactive – engages audiences in active two-way communication

involve many-to-many communication - geographically distributed groups communicate interactively and simultaneously

use World Wide Web as communication tool to enhance team work


Some e-Communication Methods

Method Description

E-mail Method of transmitting communication across the Internet

Phone Conf.

Digital Phone System – allows conference call by participants

Chat A method of real-time communication between a group

Instant Messaging (IM)

A method of real-time communication between two people

Video Conf.

Telecommunication technology that allows two way video conf.


E-Business Systems


What is CRM?

Customer Relationship Management (CRM): The measures an organization takes to identify, select, acquire, work with, and retain its customers

CRM

Technology

Customer

Process

CRM is a business and marketing strategy that integrates technology, process and all business activities around the customer (Feinberg & Kadam, 2002)


CRM parts

...a management strategy that enables an organization to become customer-focused and develop stronger relationships with its clientele.

It helps piece together information about customers, sales, marketing effectiveness, responsiveness and market trends.

(Soutiman Das Gupta, 2005)


CRM features

Continuous dialog across all customer touch points

Consistent user experience across all contact points that the customer chooses

Personalization of products and services based on customer needs and expectations

Real-time access to all customer information across the enterprise


CRM software

CRM software provides sales, marketing, and support teams with powerful tools to efficiently and effectively manage customer relationships [7]


From Traditional to Social CRM

Traditional CRM Social CRM


CRM solution example



What is ERP?

Enterprise Resource Planning (ERP) system is a packaged business software system that allows an organization to automate and integrate key business processes, share common data, and access information in a real-time environment


ERP Modules

ERP solution is divided into several different software modules:

Financial Management

Human Capital Management

Sales and Marketing

Procurement

Production

Analytics

...


SAP ERP Modules


Microsoft ERP Modules



What is SCM?

The modern supply network is complex, covering many suppliers, modes of transport and different countries.

Supply Chain Management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain


Supply chain

The supply chain encompasses all of those activities associated with moving goods from the raw-materials stage through to the end user


The Value Chain


SCM System

Supply Chain Management (SCM) system includes tools or modules that are used to execute supply chain transactions, manage supplier relationships and control associated business processes


E-Business Enterprise Model


E-Tourism

E-Business transforms tourism industry

The term „e-Tourism“ refers to the use of e-business systems in tourism industry

E-tourism is the digitalization of all processes and value chains in the tourism, travel, hospitality and catering industries that enable organizations to maximise their efficiency and effectiveness. (Buhalis, 2003)


Cloud Tourism

What is Cloud Computing?

Cloud computing (often referred to as simply „the cloud“) is the delivery of on-demand computing resources (software, infrastructure, platforms and information) over the Internet and on a pay-for-use basis [8] without the

need to install, store, purchase and maintain them locally on client computers


Why Cloud?

Small companies can not afford a large amount of hardware nor the staff that goes along with it

Large companies may find the costs of maintaining and managing their own datacenters to be prohibitive, or perhaps they have made a significant investment only to discover that much of their resources idling away

...


Cloud dilemma

Why not outsource to companies who specialize in running data centers and providing hardware/virtualization services and only pay for what you use?

It is the classic "buy vs. rent" scenario

Users no longer need to worry about managing, saving, and backing up their files

Applications can be accessed from any computer with an Internet connection, eliminating expensive licensing and hardware costs and allowing organization to pay for only what it needs


Cloud Tourism

Hotels & Resorts Restaurants and Foodservice

Cruise Airline Destination Service Providers

Travel Agencies

SaaS Software as a

Service

PaaS Platform as a

Service

IaaS Infrastructure as a Service

Micros Cloud POS

Fidelio WebSuite

Sabre Airline Solution

Amadeus e-Ticket

Database

Development tools

Middleware

Storage

Servers

Network


Cloud Tourism

Cloud Tourism

Business

• Management

• Marketing

• Finance ...

Tourism

• Transport

• Travel

• Hospitality

• Heritage ...

Information Technologies as a Service • Hardware

• Software

• Telecomunications ...

Cloud Tourism


References

1. Swindoll, C. (2011) „Redefining Fundraising – Data“, Pursuant [Online]. Available at: http://www.pursuant.com/blog/tag/dikw-model/ (accessed: 1.11.2012)

2. Nedorost, T. (2009) „CGS1060 Introduction to Computer Science“, PowerPoint presentation [online]

3. Hay, D. (2010) „Web 3.0 demystified: An explanation in pictures“, Social Media. Available at: http://socialmedia.biz/2010/10/21/web-3-0-demystified-an-explanation-in-pictures/ (accessed: 30.11.2012)

4. Venema, M. (2011) „An Introduction to the Tourism System“, Education for Tourism, Edutour BV.

5. Njeguš, A. (2012) Information Systems in Tourism Industry, Singidunum University, Belgrade.

6. WikiBooks, „E-Commerce and e-Buisness – Concepts and Definitions“. Available at: http://en.wikibooks.org/wiki/E-Commerce_and_E-Business/Concepts_and_Definitions (accessed: 16.01.2013)

7. Sage CRM (2010) „Creating a customer focused business with CRM“. Available at: http://www.sagecrm.com/northamerica/what-is-crm/ (accessed: 17.01.2013)

8. IBM Smart Cloud, „Computing as a service over the Internet“, IBM. Available at: http://www.ibm.com/cloud-computing/us/en/what-is-cloud-computing.html (accessed: 18.01.2013)

http://www.pursuant.com/blog/tag/dikw-model/



http://socialmedia.biz/2010/10/21/web-3-0-demystified-an-explanation-in-pictures/















http://en.wikibooks.org/wiki/E-Commerce_and_E-Business/Concepts_and_Definitions






http://www.sagecrm.com/northamerica/what-is-crm/






http://www.ibm.com/cloud-computing/us/en/what-is-cloud-computing.html








